We've written time and again about the risks of Payday Loans, but it's worth a refresher with the holidays in full swing. PayDay loans are for real emergencies, and can be a credit (and financial) killer if treated otherwise. Their high interest rates can balloon if you default, and there are horror stories out there of consumers botching a PayDay loan so badly that they end up owing 300%+ of what they were originally lent.
During the holidays, thousands of consumers take out a PayDay loan to fill the gap in their holiday budget. Do not do this! Yes, the holidays can be tricky if your budget is running thin, and we all love to give, especially when our family is involved. But trust us when we say that the PayDay loan you take out for this holiday season could still be gobbling up your personal finances come Thanksgiving, 2013.
PayDay loans aren't all bad - in fact, taking out a PayDay loan and paying it back quickly can actually give your credit score a boost. But if you're unsure that you can back your loan within a month, then we would advise that you not even consider taking out a PayDay loan during the holidays. You'll have one more thing to be thankful come next year, even if the area under the tree looks a little more empty then you were hoping for. Trim your shopping list, take advantage of coupons and be responsible when it comes to holiday spending in 2013.
